The Service logic as a guideline towards sustainability
Now how can a company tackle the environmental challenges of today’s world with the help of the Service logic? The answer is by applying the three main concepts of the Service logic within their business models. Each concept can reduce environmental ramifications of the company’s processes and have positive effects on its sustainability.
Focus on intangibility
By offering a service instead of a product, a company can address resource consumption while creating value with the customer. Now there is less focus on goods and more focus on the service provided by these goods, ownership is less important and often stays with the company. This increases the opportunity and motivation for companies to design durable products, decrease the energy consumption, reuse certain components and to properly recycle materials.
The concept of value cocreation equals long-term relationships and more frequent communication with customers. This improves the company’s position to convince and guide their customers toward more sustainability and to establish a cultural shift. Companies thus involve customers and make them more conscious about sustainability or even stimulate more sustainable consumption patterns through durable design.
The implementation of an ecosystem has the possibility to deliver sustainable benefits throughout the entire product life cycle. A company can work with suppliers of recycled materials and green energy or they can team up with partners to recycle and maintain the products. A company and its ecosystem can thus mutually help each other and improve sustainability of each other’s processes.
Sustainability in practice: best practice cases
Several companies have already proven how sustainability can improve by implementing the Service logic.
A first example, is the best practice case Signify. This company achieves its sustainability goals by offering ‘lighting’ in the form of Lighting as a Service and Circular Lighting. Within these offerings, they incorporate regular maintenances to extend the product’s life cycle and take-back offers to correctly recycle the light fixtures. They additionally have strong relationships with their B2B customers and offer them training about the operation of the lighting systems and how to replace components to make the products last longer. Finally, Signify has developed an extensive ecosystem and even guaranteed sustainability for the entire supply chain with their Supplier Sustainability Declaration.
A second company that acts as a best practice, is Q-lite. This company manufactures displays and offers solutions for companies to present their message with Display as a Service. Within this offering, they provide upgrades and reuse certain components in order to extend the product’s life. In addition, they improve sustainability through the relationship with their customers where they give tips on how to minimize energy usage. Q-lite also exchanges waste, recycles products, provides their displays of green power and uses recycled aluminium via the establishment of a valuable ecosystem.
How can my company implement this Service logic and attain sustainability, you might ask? There are no fixed answers, but together we can face the challenges your company is confronted by today. Let Callebaut Collective act as a valuable partner within your ecosystem in order to attain your sustainability goals. These two compagnies illustrate how offering well established service offering can help achieve high level sustainability goals and prove the potential of applying the Service logic.